What are BRC-20 chips?
BRC-20 Tokens are a novel standard on the bitcoin blockchain, BRC-20 tokens were inspired by ethereum's ERC-20. Like ethereum ERC-20 strands for ethereum Request for Comments, BRC-20 also adapts to the bitcoin Request for Comments.
BRC-20 tokens enable the creation, minting, trading and transfer of tokens or fungible assets on the bitcoin blockchain via the Ordinals protocol. bitcoin Ordinal protocol is a numbering system that allows users to attach additional data to satoshis, the smallest unit of bitcoin.
The process of attaching additional data to satoshis is called enrollment, BRC-20 tokens do not need smart contracts to execute transactions like ERC-20 tokens do, their transactions are done through JSON Enrollments about satoshis via bitcoin Ordinals.
Differences and comparison between BRC-20 and ERC-20
ethereum's ERC-20 might have inspired the creation of BRC-20 on the bitcoin blockchain, but make no mistake, they are not the same and we will explore that in this section of this article.
Operation: One of the key differences between BRC-20 and ERC-20 is that BRC-20 tokens find their home within the bitcoin blockchain, while ERC-20 operates on the ethereum blockchain.
Implementation: BRC-20 and ERC-20 are implemented differently; However, BRC-20 is experimental, meaning it has not undergone the BIP process. It only implements changes to the bitcoin protocol, while ERC-20 underwent the EIP process, which was approved by the ethereum community before its implementation after being vetted.
Security: Both are secure as they are both secured by the two major blockchains in the crypto space, but BRC-20 is secured by the bitcoin blockchain and ERC-20 is secured by the ethereum blockchain.
High Gas Rates or Transaction Fees: Both have high gas fees if you trade on decentralized exchanges (DEX).
Wallets: Their wallets are different, you can store your BRC-20 token in wallets that support bitcoin Taproot upgrade like Unisat, Xverse, CoinW and Alex. While ERC-20 tokens are stored in ethereum compatible wallets such as Metamask, Exodus, Trust wallet, Atomic, MyEtherWallet and all EVM compact wallets.
Smart contract functionality: BRC-20 tokens do not rely on smart contracts to execute transactions, but ERC-20 tokens do.
Symbolic value boost: BRC-20 tokens are token values driven by inscriptions, and ERC-20 token values are driven by utilities and speculation.
Fungibility: BRC-20 tokens are semi-fungible because they are only exchanged in set increments. For example, BRC-20 tokens are sold in sets, so you cannot buy 1003 xBRC-20 tokens (with x being the token) if the only people selling decide to sell in sets of 250, 500, 750 and 1000, depending about how many tokens they want to sell. Meanwhile, ERC-20 tokens are fully fungible because they can be exchanged in any amount.
Features: Currently, the BRC-20 token standard is primarily used to create meme tokens, while the ERC-20 token standard is used for a good number of fungible tokens on ethereum, including stablecoins, governance tokens, wrapped tokens, and tokens. useful.
Advantages of the BRC-20 token standard
The fact that BRC-20 tokens are built on the most secure blockchain in the bitcoin crypto space, should help you understand that these tokens will benefit from the security that the bitcoin Blockchain provides.
Interoperability with the bitcoin network is one of the main advantages of the BRC-20 tokens, as they enjoy and take advantage of the widespread acceptance of bitcoin as the most successful cryptocurrency, which has contributed to the overall success of the BRC-20 token. Additionally, this bitcoin support gives the BRC-20 standard access to use the existing infrastructure that the bitcoin network already has, including its wallets and exchanges.
The BRC-20 standard is still in its early stages, so there is enormous potential for growth in the future and as more people continue to adopt and invest in BRC-20 tokens.
Cons of the BRC-20 token standard
Likewise, as the BRC-20 token standard enjoys the benefits of the bitcoin network, it will continue to be affected in areas where bitcoin lags behind. This is because bitcoin is not as scalable as other blockchains like ethereum. As BRC-20 tokens continue to gain popularity and awareness, there are concerns about congestion, which could lead to potential issues of higher transaction or gas fees.
Another consideration is that BRC-20 tokens run on the ordinal protocol, a protocol that is still in its early stages of development, meaning there is a chance it could be vulnerable or have flaws as the technology evolves.
The bitcoin Feedback Request Token Standard (BRC-20) is still in its early stages of development, so it is safe to say that it is still semi-fungible compared to the ERC-20 token standard. It has some limitations, such as it is sold and bought in games, you are limited to what is available on the DEX market, and you cannot buy as much as you want, whether in large or small quantities.
BRC-20 Token DEX Swaps
This article will cover how to trade bitcoin Feedback Request Tokens (BRC-20) on UniSat, the most widely used decentralized exchange (DEX) for trading BRC-20 tokens. You can also check out other DEXs like Xverse and Alex.
How to install and configure UniSat Wallet
To trade on a decentralized exchange (DEX), you need a wallet, go to your Chrome browser and search for the UniSat Wallet Extension as shown below, click “Add to Chrome” to download and add the UniSat Wallet extension to your Chrome browser.
<img decoding="async" class="alignnone size-medium wp-image-572164 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-1-1.png?w=460&resize=460%2C214″ alt=”unisat wallet” width=”460″ height=”214″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-1-1.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-1-1.png?w=460&resize=460%2C214 460w” sizes=”(max-width: 460px) 100vw, 460px” loading=”lazy” data-recalc-dims=”1″/>
Click on the “Create new wallet” button to create your UniSat Wallet.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572165 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-2-1.png?w=460&resize=460%2C184″ alt=”bitcoin Unisat” width=”460″ height=”184″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-2-1.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-2-1.png?w=460&resize=460%2C184 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
Create your password, use a password you can remember as you would need it to make transfers, and click the “Continue” button. The Recovery Passphrase page appears. Write down your passphrase and keep it in a safe place because anyone who has access to your passphrase has access to your wallet. Then click “Continue”.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572167 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-3-1.png?w=460&resize=460%2C206″ alt=”BitcoinBTC-20″ width=”460″ height=”206″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-3-1.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-3-1.png?w=460&resize=460%2C206 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
I hope you are a cryptocurrency genius. I would recommend that you leave the Step 2 page as is, just click “Continue”. He“Compatibility Tips” A pop-up window will appear, check the boxes and click “OK”
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572168 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-4-1.png?w=460&resize=460%2C169″ alt=”BRC-20″ width=”460″ height=”169″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-4-1.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-4-1.png?w=460&resize=460%2C169 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
You have now successfully created your UniSat wallet, where you can receive, send and buy cryptocurrencies.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572169 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-5-1.png?w=460&resize=460%2C154″ alt=”Unisat” width=”460″ height=”154″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-5-1.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-5-1.png?w=460&resize=460%2C154 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
When you click “Receive” You will be given a QR code that you can scan on your phone and also an option to copy your wallet address manually.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572170 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-6-1.png?w=460&resize=460%2C178″ alt=”Wallet” width=”460″ height=”178″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-6-1.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-6-1.png?w=460&resize=460%2C178 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
When you click “Send”, you will see where to enter the address of the recipient you want to send your bitcoin to, and below is where you will enter the amount of bitcoin you want to send. You can choose whatever transfer speed you want, but keep in mind that the faster the transfer, the higher your gas fee or transaction fee will be.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572171 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-7-1.png?w=460&resize=460%2C178″ alt=”bitcoin ” width=”460″ height=”178″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-7-1.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-7-1.png?w=460&resize=460%2C178 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
I wouldn't recommend using the “Buy” feature as it is too expensive and it is better to buy your bitcoin on a centralized exchange and send it to your UniSat wallet.
How to buy, sell and trade on UniSat
To buy, sell, and trade BRC-20 tokens, you need bitcoin in your wallet to pay gas fees and bitcoin to purchase the BRC-20 token. So go to any centralized exchange of your choice, such as Binance, OKX or ByBit, to buy your bitcoin, copy your UniSat wallet, paste it to the recipient's address on the centralized exchange and send the bitcoin.
Now that your wallet has been funded, it's time to trade, go to the UniSat websiteand click “Connect”.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572172 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-8-1.png?w=460&resize=460%2C207″ alt=”BRC-20 DEX” width=”460″ height=”207″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-8-1.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-8-1.png?w=460&resize=460%2C207 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
Click on “UniSat Wallet”and connect your UniSat Wallet.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572173 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-9-1.png?w=460&resize=460%2C219″ alt=”Connect Unisat wallet” width=”460″ height=”219″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-9-1.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-9-1.png?w=460&resize=460%2C219 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
Once your UniSat Wallet is connected, click “brc-20”, as shown below, to see the full list of BRC-20 tokens you can trade UniSat.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572174 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-10-1.png?w=460&resize=460%2C212″ alt=”bitcoin wallet” width=”460″ height=”212″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-10-1.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-10-1.png?w=460&resize=460%2C212 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
Click on any of the BRC-20 tokens you want to buy, for example I clicked on the “memes” token below. There are buttons at the top right of the screenshot circled in red. “View” and “Trade”.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572175 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-11-1.png?w=460&resize=460%2C139″ alt=”BRC-20″ width=”460″ height=”139″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-11-1.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-11-1.png?w=460&resize=460%2C139 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
If you click View, will take you to btc/token/brc20/352242?hmsr=unisat” rel=”nofollow”>OKLINK where you can see the inscription of the BRC-20 meme with all its details, Total supply, Limit per mint, Headlines, minted tokensand Price.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572176 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-12-1.png?w=460&resize=460%2C183″ alt=”Exchange tokens” width=”460″ height=”183″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-12-1.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-12-1.png?w=460&resize=460%2C183 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
When you click Tradewill take you to UniSat Marketwhere you can see all the listings meme token registrations that you can buy.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572177 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-13-1.png?w=460&resize=460%2C214″ alt=”BitcoinBRC-20″ width=”460″ height=”214″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-13-1.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-13-1.png?w=460&resize=460%2C214 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
Click on any of the sellers that have the exact number of meme registrations you want to buy or on any of the sellers that are close to the number of meme registrations you want to buy. After selecting a seller, the purchase page below with the “Buy now” The button will appear.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572178 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-14.png?w=460&resize=460%2C185″ alt=”btc network” width=”460″ height=”185″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-14.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-14.png?w=460&resize=460%2C185 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
Click on “Buy now” and the confirmation page will appear to confirm your order, click “Confirm” and you have purchased the BRC-20 token.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572179 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-15.png?w=460&resize=460%2C214″ alt=”BRC-20 wallet” width=”460″ height=”214″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-15.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-15.png?w=460&resize=460%2C214 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
After you bought your BRC-20 and want to sell it, go to the market, click “my brc-20”Click on the registration you want to sell and then click on the listing.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572180 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-16.jpeg?w=460&resize=460%2C179″ alt=”bitcoin” width=”460″ height=”179″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-16.jpeg?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-16.jpeg?w=460&resize=460%2C179 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
Click on the more buttonEnter the exact number you want to sell and click “Next”.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572181 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-17.jpeg?w=460&resize=460%2C179″ alt=”BRC-20″ width=”460″ height=”179″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-17.jpeg?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-17.jpeg?w=460&resize=460%2C179 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
Click “Next again”.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572182 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-18.jpeg?w=460&resize=460%2C189″ alt=”bitcoin” width=”460″ height=”189″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-18.jpeg?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-18.jpeg?w=460&resize=460%2C189 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
“Sign and pay”and “Made”, your registrations will be listed. When they pick up your order, your registration will be sold and the money will be transferred to your wallet.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572183 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-19.jpeg?w=460&resize=460%2C182″ alt=”Trading tokens” width=”460″ height=”182″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-19.jpeg?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-19.jpeg?w=460&resize=460%2C182 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
Use CoinW to track the price of your BRC-20 tokens
CoinW is a centralized crypto exchange where you can track your BRC-20 and use the charts to make well-informed decisions about which token you want to purchase.
<img loading="lazy" decoding="async" class="aligncenter wp-image-572184 size-medium" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-20.png?w=460&resize=460%2C192″ alt=”bitcoin coin” width=”460″ height=”192″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-20.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-20.png?w=460&resize=460%2C192 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
To search for BRC-20 tokens, click “Market”click on “Hot”, and then click “BRC-20”, As shown below.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572185 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-21.png?w=460&resize=460%2C199″ alt=”Graphics” width=”460″ height=”199″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-21.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-21.png?w=460&resize=460%2C199 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
For example, I clicked on ORDI, as you can see in the chart below.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572186 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-22.png?w=460&resize=460%2C168″ alt=”BRC-20 cards” width=”460″ height=”168″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-22.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-22.png?w=460&resize=460%2C168 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
Here is another example with RATS, another BRC-20 token on the list.
<img loading="lazy" decoding="async" class="alignnone size-medium wp-image-572187 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-23.png?w=460&resize=460%2C173″ alt=”bitcoin” width=”460″ height=”173″ srcset=”https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-23.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2024/01/bitcoin-23.png?w=460&resize=460%2C173 460w” sizes=”(max-width: 460px) 100vw, 460px” data-recalc-dims=”1″/>
Conclusion
In conclusion, BRC-20 tokens provide a novel avenue for tokenization within the bitcoin blockchain, expanding its utility beyond traditional cryptocurrency transactions. They offer seamless integration of additional data into satoshis, enabling a broader range of use cases and applications.
With BRC-20 tokens, the bitcoin ecosystem gains enhanced functionality and opens up possibilities for innovative decentralized finance (DeFi) solutions. By leveraging the Ordinals protocol, BRC-20 tokens contribute to the growing diversity and maturity of the blockchain industry as a whole.
Featured image from IQ.wiki
Disclaimer: The article is provided for educational purposes only. It does not represent NewsBTC's views on whether to buy, sell or hold investments, and investing naturally carries risks. It is recommended that you conduct your own research before making any investment decisions. Use the information provided on this website at your own risk.
